TelecomTV TelecomTV
  • News
  • Videos
  • Channels
  • Events
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research and Innovation
  • Security
  • More Topics
  • Network Partners
  • Industry Insights
  • Directory
  • Newsletters
  • |
  • About
  • Contact
  • |
  • Connect with us
  • Digital Platforms and Services
  • Open RAN
  • Cloud Native Telco
  • Telcos and Public Cloud
  • The Green Network
  • Private Networks
  • Open Telco Infra
  • 5G Evolution
  • Access Evolution
  • Edgenomics
  • Network Automation
  • 6G Research & Innovation
  • Security
  • Connect with TelecomTV
  • About
  • Privacy
  • Help
  • Contact
  • Sign In Register Subscribe
    • Subscribe
    • Sign In
    • Register
  • Search

Devices

Devices

Weak demand sees smartphone makers head for the Goldilocks zone

Nick Wood
By Nick Wood

Nov 28, 2019

via Flickr © Stuart (CC BY 2.0)

via Flickr © Stuart (CC BY 2.0)

  • Global sales in third quarter decline 0.4 percent on last year to 387 million
  • Players who fared better were those focused on mid-tier and entry-level devices
  • Which is another way of saying Apple turned in another lacklustre performance

Foldable touchscreens and iPhones with cameras all over the back of them are all very exciting, but consumers appear to want something a little more modest at the moment. Not cheap; not bank-breakingly expensive; somewhere in the middle.

"For the majority of smartphone users, desire has shifted away from owning the least expensive smartphone. Today's smartphone user is opting for mid-tier smartphones over premium-tier ones because they offer better value for money," said Anshul Gupta, senior research director at Gartner.

As well as looking for handsets at the right price, many consumers are delaying purchases of 5G devices until network coverage reaches the sweet-spot too, he added.

Gupta's comments come as global smartphone sales in the third quarter fell to 387.5 million from 389.1 million a year earlier, a decline of 0.4 percent.

Samsung, Huawei and OPPO were the only major vendors to grow sales, Gartner said, precisely because they strengthened their entry-level and mid-tier product lines. Samsung in particular managed to grow sales by 7.8 percent year-on-year thanks to the "aggressive revamp of its portfolio, with a focus on mid-tier and entry-tier segments," Gupta said.

In contrast, Apple, which has always focused its attention more towards the upper echelons of the market, sold 40.8 million iPhones in Q3, down 10.7 percent compared to a year ago.

"Although Apple continued its sales promotions and discounts in various markets, this was not enough to stimulate demand globally," said Gupta. Having said that, Apple's recently-refreshed iPhone line-up has been well received, "which suggests sales may be positive in the remaining quarter."

via Gartner, November 2019

via Gartner, November 2019

Unlike a lot of analyst firms, which measure the health of the smartphone market based on shipment volumes, Gartner instead counts sales to end users, a slightly different metric. That's why earlier this month, everyone was saying how the smartphone market bounced back in Q3 because shipments showed modest growth. However, by Gartner's calculation, consumer demand is still soft compared to a year ago.

Upcoming Black Friday and Cyber Monday sales could help turn things around though, Gartner believes.

"Vendors including Google and Samsung are likely to offer aggressive price promotions not just for their older smartphones but also for newer devices such as the Google Pixel 4 and Samsung Galaxy Note 10," Gartner predicts.

Meanwhile, despite its travails with the US government, Huawei was the standout performer of the quarter, being the only top-five smartphone maker to record double-digit sales growth. The Chinese company sold 65.8 million smartphones in the three months to 30 September, up 26 percent on last year. It did particularly well in its home market, selling 40.5 million smartphones, increasing its share of the Chinese market by 15 percentage points, according to Gartner.

"Huawei's strong ecosystem in China continued to show growth. The current situation with the U.S. has also fostered patriotism among Huawei's partners, which are now keener to promote its smartphones in China — a development that makes it difficult for local competitors to compete aggressively against Huawei," Gartner said, adding that its investments in sub-brands (Honor and Nova); in online and retail sales channels; and 5G and technological innovation has underpinned its success in China.

So there you have it: if you want to be a successful smartphone maker, head for the Goldilocks zone, and incur the ire of your biggest economic rival. Easy.

Related Topics
  • 5G Evolution,
  • 6G Research and Innovation,
  • Analysis & Opinion,
  • Announcement,
  • Apple,
  • Business Models,
  • Devices,
  • Global,
  • Huawei,
  • Mobile,
  • News,
  • Samsung,
  • Telecoms Vendors & OEMs

More Like This

Access Evolution

News brief: Global smartphone sector slumped in Q4

Jan 19, 2023

5G Evolution

GlobalData reveals its six telco consumer services, platforms and devices category predictions for 2023

Jan 13, 2023

Digital Platforms and Services

Spatial tap: Turning sound quality up to 11

Jan 4, 2023

Sustainability

TIM joins Eco Rating for a more informed choice of smartphone

Dec 22, 2022

AI, Analytics & Automation

Technology, media, and telecom startups dominate global patent activity, reveals GlobalData

Aug 25, 2022

Email Newsletters

Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.

Subscribe

Top Picks

Highlights of our content from across TelecomTV today

0:46

The Cloud Native Telco Summit returns this September!

8:32

Azita Arvani on Being a Female Leader at Rakuten Symphony

16:19

AT&T Amy Zwarico on securing telco applications in the public cloud

1:44

Join us for the greatest industry debate of the year!

TelecomTV
Company
  • About Us
  • Media Kit
  • Contact Us
Our Brands
  • DSP Leaders World Forum
  • Great Telco Debate
  • TelecomTV Events
Get In Touch
[email protected]
+44 (0) 207 448 1070
Connect With Us
  • Privacy
  • Cookies
  • Terms of Use
  • Legal Notices
  • Help

TelecomTV is produced by the team at Decisive Media.

© Decisive Media Limited 2023. All rights reserved. All brands and products are the trademarks of their respective holder(s).